9911796707
TMI Blog1993 (3) TMI 207X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise Rules, read with Section 11A of the Central Excises and Salt Act, 1944. 2. The appellants, a registered SSI unit availing the benefit of concessional rate of duty vide Notification No. 175/86 have been manufacturing parts of Transmission lowers, welding nuts etc. falling within Chapter Heading 7308.90, and have filed a requisite declaration vide Rule 57G of the Rules for availment of MODVAT credit in respect of inputs, which has been approved. The appellants received Steel items purchased by M/s. Jyoti Structures Ltd. for whom they were doing the job works. The said items were eligible for availment of deemed credit, and accordingly the appellants took deemed credit thereon and cleared their final product on payment of approp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that the MODVAT credit is not available on stock transferred on two counts (i) it is not known whether the actual purchaser has availed of the MODVAT Credit against the duty paying documents and have then transferred the goods t(c) the job workers and, (ii) the appellants, as SSI units, pay duty at the concessional rates and supplier would be eligible to take higher notional credit vide Rule 57B and the overall effect would be that credit availed of would exceed the duty suffered by those inputs. He has therefore rejected the appeal. 3. Shri S.U. Jagesha, the Ld. consultant appearing for the appellants, has pleaded that the transfer of item by their suppliers is not under the provisions of Rule 57F of the Rules. In his submission, pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om they had undertaken the job work, otherwise than under the provisions of Rule 57G of the Rules, and have cleared the final product on payment of requisite duty. The CBEC have, vide their circular dated 1-3-1989, clearly specified that MODVAT Credit facility would be available in case of purchase as well as stock transfer. Though the Board s directions are subsequent to availment of credit by the appellants and commencement of proceedings in relation thereto, the aforesaid circular of the Board also mention that all the pending matters be disposed of accordingly. The effect of the said instructions from the Board has therefore to be given to the present proceedings. To clear the doubt whether M/s. Jyoti Structures have taken the credit or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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